Buying a Park City Short Sale
What is a Short Sale?
A short sale means the seller's lender is accepting a discounted payoff to release an existing mortgage. Just because a property is listed with short sale terms does not mean the lender will accept your offer, even if the seller accepts it.
Don’t listen to anyone who tells you that you should get x result in y amount of time. Every case is different. Decisions depend on wether second liens are involved, the willingness of the bank to move forward, the relationship between the bank and homeowner, and a host of other factors make the process unpredictable. Some short sales can close within a week while others can take over a year to complete. Only a knowledgable listing agent can speed up the process.
2. The Process will Drain You, Emotionally
Be prepared to be disappointed. You may wait a long time for a decision that is not made in your favor.
3. You May or May Not Get a Bargain
The price is usually set by the agent & seller, not bank. The agent and seller often create a very low asking price in order to attract buyers. The bank is normally unaware of the asking price; however, the bank has the final say in what an acceptable offer will be. The buyers should consider comparables before submitting an offer. This will increase the likelihood of getting an offer approved.
4. The Importance of a Good Listing Agent
It's one strike against you if the listing agent has never handled a short sale, but it's even worse if your own agent has no experience in that arena. You need an experienced short sale agent.
An agent with experience in short sales will help to expedite your transaction and protect your interests. You don't want to miss any important detail due to inexperience or find out your transaction is not going to close on time because no one has followed up in a timely manner.
5. Be pre-approved or be able to show funds
Banks will not look at your offer without any evidence that shows you are able to purchase the property.